we are well-established in grey cotton yarns and knitted fabrics. the Company is nowsharply focused to explore new frontiers in the finished fabric segment with a long termprospective.
I take immense pleasure in presenting the 26th annual report to you. I once againextend my sincerest gratitude for investing your time and precious resources in ourCompany's journey. With this letter I take the opportunity to share my thoughts andbeliefs for the future.
Hard work and consistency in performance have led to stronger roots in the yarn andfabric market over the years. Now is the perfect time when we set out to explore newerfrontiers in the finished fabric segment to grow beyond and become a prominent andreliable supplier to apparel manufacturers.
Our Performance in 2017-18
I am pleased to report impressive financial results for the year 2017-18. Despite achallenging period for the textile industry the Company achieved the highest-ever revenueof 1145.25
Crores growing by 22.70% over the previous year. We recorded an EBDITA and PAT of157.18 Crores and 52.39 Crores respectively. Exports accounted for over 64.36% of thetotal revenue. The Board recommended a dividend of 1.20 per equity share.
During the year the Government implemented Goods and service tax (GST) to bringdifferent tax regimes under one umbrella. It eliminated multiple taxes at variousmanufacturing stages.
However in the transitional period it has affected the textile trade adversely asthere was resistance to the new regime across the textile value chain.
Your company's profitability was impacted due to disturbance in textile tradereduction of duty drawbacks and time taken to pass on the GST impact in the market. Nowwith the stabilisation of markets the negative impact has faded away completely and theeconomy is moving progressively towards a sustainable and steady growth.
Today India has become an attractive destination for several industries across theworld. Amongst those several industries textile and apparel industry are growing at afast pace. The industry is expected to reach US$ 250 Billion by 2018-19 owing tofavourable demographics rising demand increasing disposable income and a switch inpreference for branded products. The exports are also expected to witness a steadyprogress largely led by favourable trade policies and superior quality products.
Our core business has acquired a satisfactory mass and we have achieved competitiveadvantages like upgraded infrastructure raw material-sourcing proximity efficiency inproduction skilled sufficient energy better logistics and ease in port connectivity. Ourflexible plants help fulfil the needs of our customers by providing customised products.Our consistent quality gives an added advantage across several geographies along withdiversifying our presence.
Expanding into new Frontiers
We are well-established in grey cotton yarns and knitted fabrics. The Company is nowsharply focused to explore new frontiers in the apparel sector with a long termprospective. The Indian apparel market is expected to witness at a CAGR of
10% backed by rise in per capita income increase in population rapid urbanisationrise in standard of living in rural areas and high penetration of online retailers. Weplan to set up an integrated textiles unit by investing 675 Crores. The unit will producea variety of processed fabric to fulfil all the requirement of apparel producers. Due tolarge scale our project enjoys cost competitiveness enabling us for the entitlement ofinterest subsidy under Rajasthan Industrial Promotion Scheme. We enjoy well-connectedproject location. For ensuring good quality state-of-the-art processing dyeing andfinishing machineries will be installed for the new project.
The Path Forward
Our strategic planning and decision-making orbits around the Company's profitability.We boast of a diverse product portfolio expansive presence and exceptional operationalefficiencies the key elements that we believe will drive future growth. We continue tocapitalise on present opportunities for enhancing shareholders' value along with long termsustainability. I am excited and optimistic for the times ahead as we are on a sustainablegrowth path despite challenging times during the year. We deeply believe in empoweringcommunities around us and transforming their lives for a happy and radiant future. Duringthe year 2017-18 we worked in the areas of women empowerment education healthcare andrural development as a part of our CSR activities.
On behalf of the Board of Directors and the senior leadership team I hereby assure youthat we have effective growth strategies in place. Our business is aligned to fulfillingconsumers' demand labour and well-positioned for a bright future. We will stay committedto building the value of your investments and trust in Nitin Spinners.
Best Wishes r. l. nolkha